NASDAQ: PETS
PETMED EXPRESS INCCIK 0001040130 · Drug Stores & Proprietary
PetMed Express, Inc. and subsidiaries, d/b/a PetMeds®, and as parent company of PetCareRx®, is a pioneer in pet healthcare, building a consumer-first digital platform in 1996 that transformed the way customers fulfill pet medications. Thirty years later, as a leading nationwide direct-to-consumer… About this business →
PetMed Express posts $57M loss, discloses going-concern doubt as cash burns $33M
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PetMed Express reports Q4 and fiscal 2026 results, holds earnings call June 2
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About PETMED EXPRESS INC
Source: Item 1 (Business) from the 10-K filed June 2, 2026. Description as filed by the company with the SEC.
ITEM 1. BUSINESS
GENERAL
PetMed Express, Inc. and subsidiaries, d/b/a PetMeds®, and as parent company of PetCareRx®, is a pioneer in pet healthcare, building a consumer-first digital platform in 1996 that transformed the way customers fulfill pet medications. Thirty years later, as a leading nationwide direct-to-consumer pet health and wellness retailer, the Company markets and sells directly to consumers through its websites (Petmeds.com and PetCareRx.com), customer contact centers, and mobile applications (iOS and Android). The Company provides access to top branded pharmaceuticals, generic medications, compounded prescription medications, over-the-counter (OTC) health and wellness products, prescription and non-prescription food, pharmacy fulfillment, and personalized AutoShip capabilities. Our digital platform offers pet healthcare solutions for a broad range of chronic conditions, including those related to allergies, arthritis, anxiety, kidneys, hyperthyroidism, and others for cats, dogs, and horses. We also offer access to a range of non-prescription health and wellness products and Rx food, non-Rx food, and treats. PetMeds and PetCareRx receive the pet’s order through our websites and mobile applications and connect to the customer's licensed veterinarian for prescription approval. Through our content website, pethealthmd.com, consumers can access educational articles for any health-related questions regarding their pets. The Company offers consumers an attractive alternative for obtaining pet medications, foods, and supplies in terms of convenience, price, speed of delivery, and valued customer service. For 30 years, PetMeds has been a trusted partner in pet health, delivering expert-backed products and pharmacy care to families.
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We are deeply committed to the mission and purpose that has driven our business from the start. Since our founding, we have fulfilled orders for almost twenty-million pet parents in all 50 states and have been instrumental in providing products that help pets live longer, healthier lives. The support of our customers nationwide has been the cornerstone of our success. Honoring our combined legacy, we bring our core values to every role we undertake as we empower pet families, ensuring they have access to products and services that can provide the best possible care for their dogs, cats, and horses.
Since 1996, PetMeds has been serving as a trusted source for pet health across North America. In April 2023, we acquired PetCareRx, Inc. (“PetCareRx”), an online supplier of pet medications, foods, and supplies based in New York. This acquisition added a catalog of prescription ("Rx") and non-Rx food and supplies, allowing us to expand beyond our core offering of pet prescriptions. Since this acquisition, we provide a more extensive selection of premium food, supplements, treats, and other pet supplies. Together, our brands are dedicated to delivering exceptional science-backed,
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veterinarian approved products from quality suppliers, making it easier for families to address preventive and chronic health needs and support the longevity of their companion animals.
Over the years, our organization has made investments in our pharmacies to ensure regulatory compliance, accreditations, and operational excellence which include implementing a rigorous verification process from order to shipment to ensure top quality control. Employing licensed pharmacists and a 50-state licensed Pharmacist-in-Charge for each of our two pharmacy locations, allows us to provide focused and specialized care backed by expertise. We continuously monitor and update our regulatory licenses in every state, as well as the U.S. Virgin Islands. Our pharmacies are accredited by the National Association of Boards of Pharmacy ("NABP") and LegitScript and are focused on compliance with all federal and state regulatory requirements.
As a core service to our customers, pet owners have the ability to contact our customer support agents and pharmacists for assistance with their animals' wellness needs via telephone, chat, text and email. Additionally, we offer extended services including employee benefits programs, through our partner Pet Synergy Group's program, PetAssure.
OUR INDUSTRY
Our business focuses on a specific segment of the pet industry: pet health for dogs, cats, and horses. Within this segment, our merchandise categories include prescription medications, generic medications, over-the-counter (OTC) solutions, vitamins and supplements, prescription food, non-prescription food, and a comprehensive assortment of pet supplies including treats. According to the American Pet Products Association 2026 State of the Industry Report, total U.S. pet industry spend grew by 4% to approximately $158 billion in 2025. This expansion was driven primarily by $68 billion in food and treats, $41 billion in veterinary care and services, and $34 billion in supplies and medications. The "humanization" of pet healthcare continues to increase the demand for pet wellness products and presents significant potential for us to expand our footprint and capture a larger share of this thriving market.
THE PET CONSUMER
According to the PetSmart Charities-Gallup State of Pet Care recent study, which surveyed approximately 2,500 U.S. dog and cat:
•More than half of U.S. pet owners surveyed skipped or declined veterinary care in the past year with financial barriers cited as the leading deterrent.
•Financial constraints act as a universal deterrent, impacting pet owners consistently across all age, race, and income demographics.
•Rising costs have led to significant declines in treatment compliance, with many owners forgoing diagnostics, preventive care, and necessary medications.
Based on the items from the above report:
•We are executing a series of strategic initiatives that enhance customer experience, optimize operational efficiency, and leverage innovation to drive long-term shareholder value.
•We believe that a high level of customer care and support has been and continues to be critical in retaining and expanding our customer base. We are redefining the customer journey by leveraging modern technology and Artificial Intelligence ("AI") to personalize the customer experience. This is surfaced through recommended products across our catalog, our robust AutoShip program and a hassle-free prescription approval process designed to make life easier for the customer.
•To cater to a diverse range of budgets, we sell products at multiple price points and offer promotions to ensure that every customer can find products that meet their needs and preferences.
•We offer AutoShip options for many of our products, ensuring convenient and consistent compliance for pets.
•Looking ahead, our strategy focuses on deepening customer trust and expanding our market footprint through three key pillars: loyalty and retention through a comprehensive loyalty program designed to provide enhanced
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incentives and exclusive value to the customers who choose PetMeds for their pet care needs; strategic B2B partnerships that leverage our existing infrastructure to provide end-to-end pharmacy fulfillment to offer seamless Rx services to pet-owning customers; and improved content and education to highlight the critical importance of pet medication compliance to ensure pet parents have the knowledge to keep their companions healthy year round.
More than 1.9 million customers have purchased from us within the last three fiscal years, including customers acquired in April 2023 as a part of our PetCareRx acquisition. We attracted approximately 266,000 and 351,000 new customers in fiscal 2026 and 2025, respectively. Our customers are located throughout the United States, with approximately 50% of customers residing in Florida, California, Texas, New York, North Carolina, Pennsylvania, Virginia and Georgia. The average order value increased slightly year over year and was approximately $98 for fiscal 2026 and $97 for fiscal 2025.
PRODUCTS AND SERVICES
PetMeds offers a wide array of products and services dedicated to pet health and wellness. As a licensed online pharmacy, we provide medications for dogs, cats, and horses, ensuring that pets receive the necessary treatments prescribed by their veterinarians.
We address the most common conditions - allergies, arthritis, and anxiety and offer prescriptions for more chronic conditions such as heartworm, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications. A large percentage of our business is selling flea and tick preventatives through Rx and OTC supplements and sprays. In addition, we stock a variety of OTC medications as alternatives or additions to prescriptions that include bone and joint care products, vitamins, treats, nutritional supplements, hygiene products and other health-related supplies. PetMeds also offers the best-named brands in premium pet foods and treats including veterinary prescription Rx diets. Our exclusive range of private label products, including joint enhancers, vitachews, shampoos and flea and tick prevention offers exceptional value to our customers at a high margin. Our results of operations may fluctuate seasonally and regionally based on weather patterns, which influence the timing of pest pressures and the resulting demand for our parasite protection products.
To obtain prescription medications, customers place the order online, they then provide their veterinarian's details at checkout, and PetMeds handles the entire end-to-end verification process before shipping. Additionally, PetMeds has veterinary pharmacists and technicians on staff to answer pet owners' medication-related questions, aiming to be a trusted resource for pet health needs.
Pet Health Customer Care Specialists - Customer Contact Center
We believe that delivering a high level of customer care and support is critical to retaining and expanding our customer base. Our customer care specialists receive ongoing training under the supervision of dedicated training managers across a broad range of topics, including product knowledge, technology tools, customer service best practices, and the relationship between our Company and veterinarians.
Our customer contact center specialists respond to customers through e-mail, text, phone, and live web chat regarding products, order status, pricing, and shipping. Following the consolidation of our two branded teams and the implementation of a best-in-class technology provider, our customer care specialists are able to work more efficiently while continuing to deliver high-quality service and support. These enhancements help maximize productivity and provide a seamless, responsive, and personalized customer experience.
Holistic Wellness Services
Pet Telemedicine: The Company engages in partnerships to provide telemedicine services, with the convenience of consultations, diagnoses and in certain states, prescriptions from board-certified veterinarians all from the comfort of their homes.
Employer Offered Pet Benefits: We continue to develop partnerships that allow us to be part of employer bundled services, offering discounted pet care solutions that provide participating companies' employees with access to our membership programs through their respective company employee benefits offerings. These membership programs include a variety of exclusive PetPlus perks which includes discounts for more than 700,000 partners, a special discount for pet sitting services, the ability to pick up your prescriptions from your local pharmacy, and free 24/7 virtual vet support and delivery services.
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STRATEGY
The Company is focused on driving sustainable growth and enhancing our competitive moat. Our forward-looking strategy is centered on transitioning from a traditional e-commerce provider to a best-in-class pharmacy provider, supported by a scalable, technology-driven infrastructure. We are prioritizing investments in the modernization of our technology stack, specifically our e-commerce architecture and cloud environments, to enhance operational agility and improve the customer experience. Central to this evolution is an emphasis on clinical compliance; we are expanding our educational initiatives to drive customer adherence for critical preventative medications, such as flea, tick, and heartworm treatments, promoted through our AutoShip program thereby increasing recurring revenue and improving pet health outcomes. Furthermore, we are diversifying our revenue streams by offering our proprietary pharmacy fulfillment and licensing capabilities to strategic partners who lack the regulatory infrastructure to serve the pet health market directly. Concurrently, we intend to partner with veterinarians and clinics to provide integrated pharmacy fulfillment services, enabling them to leverage our logistics and dispensing expertise to better serve their patients. Complementing these growth levers is the development of a robust loyalty and membership program designed to incentivize long-term retention and optimize customer lifetime value. We plan to leverage our 30 years of pet profile data to continue to personalize the customer experience online and through our mobile apps. We believe these purposeful investments in the foundation of our core business as a pharmacy will drive sustainable competitive advantages and long-term shareholder value.
DISTRIBUTION CHANNELS
We market and sell our products and services through three primary distribution channels:
1E-commerce Websites – Through our owned and operated websites and mobile applications, including PetMeds.com and PetCareRx.com, we offer customers convenient and accessible platforms to purchase prescription and non-prescription pet medications, food, and wellness products.
Key features of our websites include AutoShip subscriptions (approximately 62.6% of our sales were generated via our AutoShip and membership program in our 4th quarter ended March 31, 2026), "ask-the-vet" services, VetLive consultations, live web chat, easy refill medication reminders, a local veterinarian finder, and express checkout options.
2Customer Contact Center – We operate a dedicated toll-free customer service center staffed by trained Pet Health Specialists who provide personalized support and assist with product inquiries, prescription processing, and order placement.
3PetAssure Broker Network – Through PetAssure, we also distribute products and wellness services via a brokered benefits model, primarily targeting employers offering pet health benefits as part of their employee wellness programs.
We are also currently investing in enhancements to our digital platforms to further personalize the customer journey, by curating product recommendations based on customer interests and shopping behavior, optimizing navigation and conversion, and ensuring a seamless omnichannel experience across web, mobile, and customer service touchpoints.
Marketing and Lifecycle Engagement
For fiscal 2026 and 2027, we have transitioned to a unified marketing and merchandising organizational structure, integrating our buying, merchandising, and marketing functions into a single cohesive unit. This alignment allows us to synchronize the end-to-end customer journey, ensuring the strategic procurement of the right product mix is seamlessly coupled with targeted marketing and high-conversion site merchandising. By eliminating departmental silos, we aim to deliver a frictionless experience that more effectively converts and retains customers across our PetMeds and PetCareRx marketing strategy.
We have focused our marketing investments on the channels that drive the highest ROI to the business which means we have shifted our dollars away from top of funnel spend and reallocated towards mid-to-lower funnel activities. A primary pillar of our strategy is the enhancement of customer retention and lifetime value through more personalized and targeted email marketing and the future launch of a robust loyalty program. In addition, we aim to expand our AutoShip program through enhanced incentives to encourage prescription compliance. These initiatives are designed to deepen customer engagement and drive recurring revenue.
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Further, we are prioritizing maximizing customer LTV (Lifetime Value) and improving our NSPAC (Net Sales Per Active Customer) by deploying sophisticated cross-selling and upselling initiatives throughout the customer journey. By leveraging personalized data insights to pair preventative medications with complementary health products, we aim to increase basket size and capture a greater share of total pet wellness spend. We believe this integrated approach targeting cats, dogs, and horses across all life stages will improve conversion rates, strengthen brand equity ad drive sustainable incremental revenue.
Through social platforms like Instagram and Facebook, we educate and inspire our community with:
•Short-form videos on pet wellness
•Educational content related to pet medications or health conditions
•Lighthearted and funny pet-related and relatable content.
Additionally, Pethealthmd.com, our blog and pet health library, serves as an SEO traffic hub, continuously updated with articles covering pet behavior, nutrition, pharmaceutical and natural remedies.
The Company aims to create a best-in-class marketing operation through a continuous test-and-learn approach as we progress into fiscal 2027. This will be visible across all customer touchpoints.
OVERVIEW OF PHARMACY OPERATIONS
The Company’s pharmaceutical operations are conducted at its facilities in Lynbrook, New York, and Delray Beach, Florida. Licensed pharmacists supervise these operations, overseeing every prescription's fulfillment. Every prescription we dispense is patient-specific and prescribed by a licensed veterinarian. To facilitate broad market access and ensure regulatory adherence, the Company maintains pharmacy licensure in all 50 U.S. states. All facilities are subject to periodic regulatory audits; to date, the Company has passed all Department of Health inspections at both the Lynbrook and Delray Beach locations.
The Company’s mail-order infrastructure adheres to rigorous industry standards. We hold the Healthcare Merchant Accreditation from the National Association of Boards of Pharmacy (NABP) and maintain LegitScript Accreditation. These certifications attest to the Company’s compliance with state and federal regulations governing the digital pharmacy landscape and the interstate shipment of patient-specific prescription medications.
All medications are dispensed pursuant to a valid veterinary order and are subject to a mandatory clinical verification process. Our pharmacists review each prescription to ensure precise compliance with the medication, dosage, and administration requirements specified by the prescribing veterinarian. At a minimum, the following data components must be validated before filling each prescription: comprehensive pet information, specific medication data (including strength, quantity, and dosage form), the prescribing veterinarian’s name, manner and frequency of administration, and any other information required by law.
Items are then picked and packaged in accordance with patient-specific requirements and applicable pharmaceutical standards. Prior to dispatch from the facility, all prescriptions undergo a final review by a licensed pharmacist to ensure accuracy and regulatory compliance. The Company utilizes third-party shipping carriers to execute national distribution, delivering pharmaceutical products across all 50 states.
SOURCING OF MERCHANDISE INVENTORY
We maintain a diverse supply chain, sourcing inventory from a broad network of pharmaceutical manufacturers and domestic distributors specializing in prescription medications, therapeutic food, and health and wellness products. In fiscal 2026, we managed a comprehensive catalog of thousands of SKUs, with approximately 88% of our inventory spend concentrated among ten primary suppliers. We believe these strategic partnerships are fundamental to our operational stability, and we focus on deepening these relationships to ensure a consistent and reliable supply of critical health products for our customers.
A key component of our growth strategy is the prioritization of direct-to-manufacturer relationships with leading global pharmaceutical companies. By sourcing both prescription and over-the-counter (OTC) medications directly from the manufacturer, we enhance our supply chain transparency, secure preferential inventory allocations, and ensure the authenticity and quality of our product offerings. These direct partnerships allow us to be a first-to-market provider of the latest pet health solutions while mitigating the risks associated with third-party distribution. We continue to invest in these
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long-term alliances to reinforce our commitment to product reliability and to maintain our competitive position in the animal health industry.
DISTRIBUTION OF MERCHANDISE INVENTORY
We purchase all of our medication directly from the manufacturer or from FDA registered United States based distributors to ensure the authenticity and safety of all medications. We efficiently manage our inventory and fulfill customer orders from our corporate headquarters in Delray Beach, Florida, and our Northeast warehouse location in Lynbrook, New York while conducting thorough checks on every order received for veterinary approval and prescription labeling accuracy. Our in-house pharmacy, fulfillment and distribution operations oversee the entire supply chain—from order placement and processing to fulfillment and shipping. For prescription medications, we strive to ship immediately upon authorization by the customer’s veterinarian.
INFORMATION AND DIGITAL TECHNOLOGY SYSTEMS
We utilize a combination of Company-owned and third-party-operated information systems to support our core business functions. These integrated systems provide capabilities across retail operations, merchandising, human resources, and financial reporting. Supported functional areas include digital commerce, inventory management, customer care, supply chain logistics, demand planning, sourcing, payroll, workforce scheduling, and general ledger management.
In fiscal 2026 and 2027, we continue to invest in modernizing and optimizing our technology infrastructure to improve operational efficiency, scalability, and resilience. These investments are focused on strengthening our overall technology ecosystem, including enhancements to our enterprise resource planning ("ERP") environment, customer engagement platforms, and data infrastructure. We are also advancing capabilities across pharmacy operations, fulfillment technologies, and MarTech platforms, including loyalty and membership programs designed to improve retention and customer LTV. Additionally, we are continuously enhancing our AutoShip programs and analytics capabilities to enable more personalized experiences and faster, data-driven decision-making across the organization
These efforts include continued enhancements across our e-commerce platforms, data and analytics infrastructure, ERP environment, call center platforms, order management systems (OMS), pharmacy systems, and fulfillment and inventory management capabilities. During the first quarter of fiscal 2027 we have implemented certain modules of a new ERP system and will continue to implement other components of the new system, which has replaced, and will continue to replace, legacy operating and financial systems.
A key priority for fiscal 2027 is modernizing our customer engagement capabilities, including expanding & automating call center solutions to unify interactions across phone, chat, and digital channels. We're also investing in our loyalty and membership programs to strengthen customer engagement, increase retention, and drive repeat purchases.
We're expanding our platform to support white-label solutions and pharmacy-as-a-service offerings, enabling partners to leverage our pharmacy infrastructure, fulfillment, and digital experience as part of their B2B growth strategy. These initiatives will help us reach more customers beyond direct-to-consumer channels and generate new revenue through strategic partnerships.
We're focused on simplifying and integrating our business processes, speeding up innovation, and strengthening system resilience and scalability. By continuing to unify our digital ecosystem, including platforms, data, and operational workflows, we are building a robust foundation to support seamless, personalized customer experiences across all channels.
These ongoing investments help the Company respond to changing market dynamics, deliver efficient, tailored customer journeys, and maintain high service reliability and performance.
COMPETITION
We operate in a rapidly evolving, highly competitive, and fragmented business environment. Our competitors include veterinarians, local and national chain specialty retailers, and vendors' own e-commerce stores. Several large retailers have recently announced entrance into the pet pharmacy space. Additionally, consumers' discretionary spending on pets extends to categories like apparel, grooming, boarding, and dog-walking. Operating in a highly competitive industry environment
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can cause the Company to engage in greater than expected promotional activity at times, which would result in pressure on average unit retail pricing and gross profit.
Our distinct advantage lies in our 30 years of expertise, delivered through our team of highly qualified pharmacists and technicians with specialized training in veterinary pharmacology that are licensed across all fifty states. These teams execute a rigorous verification process and are compliant with all federal regulations set by the FDA and DEA. PetMeds and PetCareRx's pharmacies are accredited by the NABP and LegitScripts. In addition to our deeply experienced pharmacists and technicians, our Customer Care team is comprised of many longtime employees as well as new talent, all of whom share a passion for pets and who exemplify our commitment to delivering high-quality products and personalized service to our customers. This combination of quality, expertise, passion and efficiency sets us apart in the marketplace.
INTELLECTUAL PROPERTY
We conduct our business under the trade names “PetMeds” and "PetCareRx" and use a family of trade names all containing the terms “PetMeds”, “PetMed” or "PetCareRx" in some form. We believe the “PetMeds” and "PetCareRx" family of trademarks, have added significant value and are important factors in the marketing of our products. We have also obtained the right to use and control the Internet addresses which include but are not limited to www.1800petmeds.com, www.1888petmeds.com, www.petmedexpress.com, www.petmed.com, www.petmeds.com, and www.petcarerx.com.
We also obtained the right to use and control the Internet addresses www.petmeds.pharmacy, www.petmed.pharmacy, www.1800petmeds.pharmacy, petcare.pharmacy, and petcarerx.pharmacy, through a National Association of Boards of Pharmacy® initiative to ensure high standards for online pharmacies. We do not expect to lose the ability to use the Internet addresses; however, there can be no assurance in this regard and the loss of these addresses may have a material adverse effect on our financial position and results of operations. We are the exclusive owners of United States trademark registrations for “America’s Largest Pet Pharmacy®,” “America’s Most Trusted Pet Pharmacy®,” “Trusted Pet Medication Experts®,” “PetMed Express, Inc.®,”1-800-PetMeds and Design®,” 1-800-PetMeds®,” “PetMeds®,” “Your Trusted Pet Health Expert®," "PetPlus®," "PetCareRx®," "Nose to Tail®," "Nose to Tail Health®," and "Nose to Tail Savings®," among numerous others.
GOVERNMENT REGULATION
We are subject to a broad range of federal, state, and local laws and regulations that relate to our business. Dispensing prescription medications is governed at the state level by Boards of Pharmacy, or similar regulatory agencies, of each state where prescription medications are dispensed. PetMeds is subject to regulation by the State of Florida and is licensed as a community pharmacy by the Florida Board of Pharmacy, and PetCareRx is subject to regulation by the State of New York and is licensed as a community pharmacy by the New York Pharmacy Board.
Our pharmacy practices are also licensed and/or regulated by 48 other state pharmacy boards, the District of Columbia Board of Pharmacy, the U.S. Virgin Islands Board of Pharmacy, and the United States Drug Enforcement Administration ("DEA"), and with respect to our products, by other regulatory authorities including, but not necessarily limited to, the United States Food and Drug Administration (“FDA”) and the United States Environmental Protection Agency ("EPA"). Our registration with the DEA, and state registrations/permits as required, permit us to dispense Schedule IV and Schedule V controlled substances. As a licensed pharmacy in the State of Florida, we are subject to the Florida Pharmacy Act and regulations promulgated thereunder. If we fail to maintain our licenses with the Florida Board of Pharmacy, or if we do not maintain the licenses/registrations/permits from other state pharmacy boards (including our home state pharmacy license in New York for PetCareRx), or if we face actions from the DEA, FDA EPA, or other enforcement regulators, our ability to dispense prescription medications to pet owners could be halted, which could have a material adverse effect on our financial condition and operations.
In addition to the foregoing, the FDA regulates animal feed, including pet food, under the Federal Food, Drug, and Cosmetic Act (the “FFDCA”) and its implementing regulations. Although pet foods are not required to obtain premarket approval from the FDA, the FFDCA requires that all animal foods are safe for consumption, produced under sanitary conditions, contain no harmful substances, and are truthfully labeled. Most states also require that pet foods distributed in the state be registered or licensed with the appropriate state regulatory agency. In addition, most facilities that manufacture, process, pack, or hold foods, including pet foods, must register with the FDA and renew their registration every two years, and are subject to periodic FDA inspection. This includes most foreign, as well as domestic facilities. Registration must occur before the facility begins its pet food manufacturing, processing, packing, or holding operations.
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The labeling of pet foods is regulated by both the FDA and some state regulatory authorities. FDA regulations require proper identification of the product, a net quantity statement, a statement of the name and place of business of the manufacturer or distributor, and proper listing of all the ingredients in order of predominance by weight. Most states also enforce their own labeling regulations. The degree of oversight of the implementation of these regulations varies by state, but typically includes a state review and approval of each product label as a condition of sale in that state. The FDA also regulates the inclusion of specific claims in pet food labeling. For example, pet food products that are labeled or marketed with claims that may suggest that they are intended to treat or prevent disease in pets would potentially meet the statutory definitions of both a food and a drug.
We rely on legal and operational compliance programs, as well as outside counsel, to guide our business in complying with applicable laws and regulations in the areas in which we do business. In addition, regulatory regime changes may add cost and complexity to our compliance efforts. It is difficult to predict with certainty the potential impact of future regulatory compliance efforts and future costs associated with such matters. Our failure to comply with such laws and regulations may result in adverse actions that could disrupt our operations and adversely affect our financial results.
HUMAN CAPITAL
The Company is committed to fostering a culture that not only advances strategic and key business priorities but also empowers employees to make a positive impact in their communities. We believe that attracting, retaining, and managing a diverse and talented workforce is crucial to our success and our workforce includes individuals of different ages, colors, disabilities, ethnicities, family or marital statuses, gender, or expressions, languages, national origins, physical and mental abilities, political affiliations, races, religions, sexual orientations, socio-economic statuses, veteran statuses, and other characteristics.
To ensure our employees have the opportunity to develop and excel, human capital management is a top priority for our executives and Board of Directors, as evidenced by the expansion of the Compensation Committee to the Compensation and Human Capital Committee. We are dedicated to identifying and nurturing the talent necessary for our long-term success. We are intentional about fostering a workplace where employees are encouraged to build their skills and explore opportunities for advancement. This includes access to a variety of resources to enhance their skills and advance their careers, including mentorship programs, individual development opportunities, education reimbursement, and exposure to cross-functional projects that provide diverse experiences.
Additionally, we offer functional management training, educational opportunities, certification programs, and educational assistance to support our future leaders in their professional growth.
We pride ourselves on maintaining a strong corporate culture that upholds high standards of ethics and compliance. Our Code of Business Conduct and Ethics outlines the principles that guide the behavior of our employees, officers, directors, and vendors. All of our employees, officers and directors are required to complete Code of Business Conduct training on an annual basis. To ensure adherence to these standards, we maintain a whistleblower policy and an anonymous hotline for confidential reporting of any suspected policy violations or unethical conduct. Furthermore, all staff members are required to complete anti-harassment training.
By fostering a supportive and inclusive environment, we empower our employees to thrive both professionally and personally, driving our company forward and making a meaningful impact in our communities.
As of March 31, 2026, we had 189 full-time employees. None of our employees are represented by a labor union or governed by any collective bargaining agreements. We consider relations with our employees to be good. The majority of our employees are connected to our Delray Beach, Florida headquarters and distribution center. Many of our personnel are currently working remotely or in a hybrid work model with the exception of essential on-site workers.
We offer our employees a wide array and highly competitive benefits such as life and health (medical, dental, and vision) insurance, medical and dependent care flexible spending accounts, supplemental insurance coverage, pet insurance, parking and commuter benefits, legal services provider network, paid time off (including gender neutral parental leave) and retirement benefits, as well as emotional well-being services through our health insurance program.
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Available Information
Our website addresses are www.petmeds.com and www.petcarerx.com. The information on our websites is not, and shall not be deemed to be, a part of or incorporated into this Annual Report on Form 10-K or any other filings we make with the Securities and Exchange Commission ("SEC"). We file annual, quarterly, and current reports, proxy statements, and other information with the SEC. Our SEC filings, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to the Exchange Act are available free of charge over the Internet on our website at www.petmeds.com or at the SEC's website at www.sec.gov. Our SEC filings will be available through our website at www.petmeds.com as soon as reasonably practicable after we have electronically filed or furnished them to the SEC.